WellStar: 'It is a power struggle'
by Jon Gillooly
jgillooly@mdjonline.com
Mar 25, 2011 | 8368 views | 26 26 comments | 57 57 recommendations | email to a friend | print
MARIETTA - Former WellStar Health System CEO Dr. Greg Simone said Thursday a power struggle has been going on for control of the organization.

He called on the community to make sure WellStar's 18-member board of trustees had community oversight.

In the last six months, four top WellStar executives have mysteriously parted ways with the organization. In September, the board fired Simone and Bonnie Wilson, WellStar's executive vice president and general counsel, without giving a reason why.

Randall Bentley Sr., of the Marietta law firm Bentley, Bentley and Bentley, is the chairman of the WellStar board of trustees. According to his website, he is also the solicitor for the cities of Kennesaw and Acworth.

When news of Simone's and Wilson's terminations became public, Bentley refused to give a reason, simply saying, "it was time for a change."

Following that change, Jim Budzinski was named WellStar's interim CEO, while WellStar replaced Wilson with Leo Reichert. The board expects to hire a fulltime CEO by the end of June.

Then on Tuesday, after the Journal made an inquiry to WellStar based on a tip, WellStar admitted that two more top executives had parted ways with the health system.

A WellStar spokesperson said both Dr. Richard Lopes, senior vice president and president of the WellStar Medical Group, which is in charge of the system's 350 physicians, and Ron Strachan, senior vice president and chief information officer, where no longer employed with the company as of Monday.

Again the Journal contacted Bentley to ask why the two parted ways with WellStar, but Bentley refused to return phone calls.

Lopes, who was hired in April 2010, was paid an annual salary of $562,660, while Strachan, who was hired in March 2008, was paid an annual salary of $288,766.

During the last WellStar board of trustees meeting on March 3, no mention was made of the employment changes.

Simone, who hired both Lopes and Strachan, said they are both excellent employees.

"This is extremely unusual conduct for an interim CEO to do this," Simone said. "He hired on a permanent executive vice president and general counsel, which, as an interim, that's pretty unheard of that you would put an executive VP in position unless you were sure you were going to be the permanent CEO because that's kind of handcuffing a CEO that might come on board."

Simone said that comment was not meant to disparage Reichert.

"Leo may be the best choice available, but as I say, it's highly unusual for an interim position to make that decision for an organization," Simone said. "But that's the first of what I think are the unusual circumstances. And then when you have these two individuals who were separated from the organization on the same day by an interim position, this is extremely unusual, and that's why I'm a little bit concerned."

Another source told the Journal that Lopes and Strachan were forced out because they had been discovered trying to alert board members about an alleged problem WellStar had with Medicare reimbursement funding.

Simone said he didn't know if that was the case, but if it was, an investigation was in order.

He also said he wasn't surprised to hear Lopes and Strachan were no longer with WellStar.

"I think what has happened since Sept. 2, I don't really want to stir that pot again," Simone said, pausing, before beginning to speak again. "To answer your question, yes, it is a power struggle. It is a power struggle. I was able to observe the interaction between Budzinski and each of these two individuals for quite some time long before I left. And so the decision to separate them from the organization does not surprise or shock me."

A WellStar spokesman told the Journal that Budzinski, who is paid an annual salary as interim CEO of $444,267, has applied to be the permanent CEO. The Journal asked Simone if the separation of Lopes and Strachan from WellStar had anything to do with Budzinski's future employment goal.

"I think that's a very good question, and I think that's a question that needs to be asked and answered," Simone said.

Simone said whomever the board hires as WellStar's new CEO, he or she needs to have a background in medicine.

"I think it's simple. Just look at the best organizations in the country. Geisinger. MAYO Clinic. Cleveland Clinic. Look at those. Every one of them has a physician leader. I think that would be in the best interest of the organization and the community, I do," he said.

Simone called on the community to take a more active role in monitoring what goes on at WellStar.

"Realistically, I think that it's not on the front burner of most people in the community, and right now there is no interruption in the services provided, the health care is still good, so I don't think that the full and dramatic impact is appreciated by the community yet. It will be," Simone warned. "And I think the community does need to ask the questions, just like you're asking the questions right now. Who is the board responsible to? Who has oversight of their decisions? Is there anybody? And the answer is no. They can make decisions behind closed doors, and they don't answer to anybody for those decisions. It seems to me that some more oversight by the community is necessary," he said.

After all, the county commission is in the process of putting together an oversight board for its government, he said.

"You know, it's a question that I think you, as the sentinels of the community's news, really need to ask," Simone said. "What is really happening there? Why is there such an overlap on the hospital authority board and the board of trustees for WellStar? What's going on? The point is, there is a lot that really needs to be looked at for the organization. I think there's a lot of good that we have done. I think there's a lot of fine people there. But I'm a little concerned about the direction it has taken very recently."

The Journal called Bentley to request an interview for this article. He did not respond.

WellStar has five community-based hospitals. One in Austell, two in Marietta, one in Dallas and one in Douglasville. With 11,500 employees, the health system, whose flagship is Kennestone Hospital in Marietta, is one of the largest in the nation, with revenues of $1.5 billion.

Comments
(26)
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soontobegone
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April 02, 2011
Wellstar has changed so much in the last couple of years. "Customer Service" is a joke. That's all the focus is on,but not on how we are to provide it. High patient ratios and overworked staff. No appreciation to the hard job that the employees are doing. It's now all about the money that the employees can make for the top executives.Employees are now offered a pay for performance bonus, but only if the 4 metrics are met.Will they hold the top executives to the same standard?And yes,better keep your mouth shut and not complain about the way things are being run, or you may not have a job the next day.
barely floating
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March 29, 2011
I have always defended Wellstar when people were going out of the county to have babies and to get medical treatment. In the past few years it has been lacking. When anything Wellstar treatments, there are hidden fees and if images are done, they are charging $100.00 ER fees and I have been questioning that and the expense of parking. Know wonder their profits are exceeding. I am looking elsewhere now since my mother almost died and a friend died from MRSA there.
This is too funny!
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March 28, 2011
Wow, I am totally not surprised all this is happening at Wellstar. It is a good old boy network if you take a quick glance at the executive level. Why is it are there a majority of white males in place? Diversity? Yeah, not so much! The employees are severely undermotivated by management and when told that they are all ears for constructive criticism, it is met with hostility. Is this really a company you want to work for? Atleast the fellow co-workers make it bearable!
single voice
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March 27, 2011
The Wellstar system is a non-profit system ran as a for profit system. The staff is over worked and the primary focus is on customer service not "world class" health care. Er nurse take up to 5 patients at a time most are demand one on one care. It services are abused by the parasites of government health care insurence who abuse the ER and clog it up with minor sickness and drug seeking. 6 figure employees are leaving like rats on a sinking ship. The lower middle class employee's have to go down with the ship because of the job market and would lose our homes and make our famlies suffer.

They're giving these people over 4m to hit the bricks and my 20-40 grand a year staff are worried about sending kids to school with lunch money and paying a mortage!
americanpie
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March 26, 2011
Wellstar is a well respected organization that obeys the law, is a good community citizen, and strives to do whats right. I am sure the 'executives' that suddently(?) lost their jobs did so because they did something very bad. Wellstar can not release it for legal reasons. I wonder what they did? If former execs are so good why don't they publicly release it including the former Ceo. What are they really hiding? What is their real selfish motivation?
yougottabekiddingme1
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March 26, 2011
This is too much. Simone complaining about abuse of power, a power struggle and executive turnover! Apparently everyone has forgotten what happened after he was named CEO! As I recall, he lobbied for the CEO job as the only person who could carry Dr. Libscomb's vision forward by maintaining stability within the system (even though he was COMPLETELY unqualified for the job, a small cardiology group to $1.5 billion health system, you gotta be kidding me). Next thing you know, the top executives are all fired, all of them, loyal but unqualifieds are promoted, consultants are brought in and abuse of power apparently leads to his undoing. Shut up already!

Oh yea, what's up with this "world class" heath care stuff? Isn't this a community based hospital?

Here's my bet, Bentley fires all the top brass then guess what? He's the only one left to run the system. You guys starting to see a pattern.....Simone, Papp, Brown, Bentley, you gotta be kidding me!

Obvious Defense
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March 26, 2011
"And as for Dr. Simone, please remember that he was let go by WellStar, for reasons that he himself will not even reveal. Of course he is going to say things to cause trouble for the company." - Concerned Citizen

Thank you someone for finally pointing out the obvious. There is a lot more going on behind the scenes in regard to Simone than he or anyone else is letting on, I'm sure. He's causing trouble, pointing the finger at the interim CEO in order to keep his own dirty secrets in the dark.

power struggle
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March 25, 2011
It is about time someone shed light on this system. How about someone looking into the mortality rate at the Wellstar system. I have heard many stories of substandard care whereby the seriously illed patients have the most inexperienced physicians and nursing staff assigned to them. Maybe an investigation by Medicare will reveal some things that need to be addressed. I know many people that live in the Cobb county area that refuse to go to any of the Wellstar facilities..instead they go to Northside, St Josephs, Crawford Long or Emory.
Linda RN
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March 25, 2011
Wellstar is so $$ driven it is pathetic. The new push is to get patients out of the hospital before 2:00, even if we have to put them in a cab and send them home alone. If they are not discharged before 2:00 pm, staff don't get a raise. Patient care is preached but not practiced. Patients are looked as $$ signs not people. Staff are overworked, disrespected, and underpaid. Everything is a cover up. All patients are usually offered the MDJ each morning for free at Kennestone Hospital, but on Friday morning no patients received the newspaper at administrative orders because Wellstar had made the front page news. Just plain shady........
concerned citizen 2
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March 25, 2011
Kennestone and Wellstar have taken great care of my family for four generations. They have excellent physicians and staff and are always on the cutting edge of medical technology. Dr. Simone is an outstanding physician but he was not fired for "no reason". He needs to come clean or keep his opinions to himself.

It is the right thing to do.
simone, again?
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March 25, 2011
I am not sure if I am more surprised that Greg Simone was approached for an interview, or that Greg Simone agreed to speak about matters which do not concern him in the least.

Gregory, son, let it go. As a mother would say, "put the toy down. Playtime is over and its time for a nap."

That's what you need to do. Take a nap. Since you were FIRED by WellStar, you have the time, right?!
LRAdams
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March 25, 2011
***Another source told the Journal that Lopes and Strachan were forced out because they had been discovered trying to alert board members about an alleged problem WellStar had with Medicare reimbursement funding***.

This statement is disturbing. Hopefully this will be looked into and clarified. WellStar is also a *Medicaid services provider*. The Medicaid system is well-known to be abused* by physicians and hospitals.

WellStar Board
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March 25, 2011
"Concerned Citizen" - RIGHT ON!

Greg Simone was on the WellStar Board for about 10 years. Was he concerned about who was watching them then? Nah. He's talking out of the other side of his mouth. He is a control freak that finally has no control over a situation and it is KILLING him. It stinks to be you Greg. Go count your WellStar severance and shut the hell up.
howling
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March 25, 2011
Not for profit? Wellstar is THE WORST healthcare I have ever seen, anywhere...and seeks to milk, bilk and squeeze their insureds in any way they can find. No sense of customer service, providers disguised as roach motels and a shyster billing system. Not for profit my right eye. "Oh, ma'am, you'll need to have that eye looked at, KACHING!!!!"
Left on my own
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March 25, 2011
As a former employee, who thankfully saw what was going on, left on my own, I can say Dr Simones comments are right on the nail's head. Budzinski and all the top level execs have come from the same upper mid-western medical system up with no vested interest in this community, with the attitude that WellStar was run by southern hicks and needed saving. Truth is it was one of the best run systems in the country before, on of the few in the black with the community and it's employees best interest in mind. If anyone opposes the new regime you will not be there long, that's why I left before they did it for me. Long time employees are not valued and definitely not the oppinions of anyone that they did not bring in as a manager or even employee. I did not like everything Simone did as president but he is correct here and this is the oppinion of many long term employees. Budzinski and his group should be the one's to go, and more community involvement as it impacts a large number of people's lives.
More There
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March 25, 2011
There is another VP who was "laid off" last summer who was VP of facilities. Go ask him what excuse he was given & how he was "laid off" after recovering from a heart attack.
Ability
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March 25, 2011
I think they ought to Hire Dr. Simone back!
outside looking in
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March 25, 2011
Sounds like the proverbial 'pot stirring to me. And to 'I don't think so.. Every person/group that owns a business expects to be paid for a product or services rendered. Try going to Publix and paying for your groceries next month.
I don't think so ...
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March 25, 2011
Wellstar is a not for profit health system, who in their own words is focused on "patients, not profits... ARE YOU SERIOUS?

They are so money hungry and inconsiderate in their efforts to collect money it is a disgrace. It is common practice to receive snotty phone calls from their worker bees in advance of surgeries, and procedures for your out of pocket expenses.

Not for profit - I don't think so.

JoeBobJoeBob
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March 25, 2011
They may be a private business, but they serve a public need. They also have a lot of public oversight due to the nature of their business. And as such, there are certain things therefore the public is entitled to know. If there are issues causing a lot of executives to leave a company, that could be indicative of any number of other greater issues that could effect the procured medical equipment decisions, to medical costs for treatment, to the sustained viability of the entire company. All of those could have an impact on their ability to deliver quality service to the public.

You say to use your $$$'s as a vote. Well part of doing that is understanding the platform of the thing you're voting for. Nothing is hurt by Wellstar being more transparent of why these executives are being removed.
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